This trade comes courtesy of Krystal Comber, CEO of SlickTrade. The full text of this strategy, can be found in TradingPub's new free eBook
"Trading Made Simple - Strategies that Risk Less than $100."
The "Afternoon Delight" trade has been extensively tested on the GBP/USD currency pair, and it is very consistent and super simple to execute if a setup is in play.
The trade requires two components:
- 15 minute charts on the GBP/USD
If you see a crossover after noon, a trade setup is in play. it really doesn't get much simpler. For full details on this strategy, make sure to watch Krystal's short video at the bottom of this blog.
Here are the steps you need to take to execute the GBP/USD "Afternoon Delight" trade:
- Select the 7pm daily on the Nadex platform
- Look to see the overall trend direction from the start of the New York Session
- If it was bearish (downward movement)then you will be looking to Buy after you receive confirmation of trend direction change
- If the trend was bullish (upward movement) then you will be looking to Sell after you receive confirmation of trend direction change
- If there is any news on GBP or USD during the hours of 12pm – 7:15pm (EST) – avoid trading the strategy that day
- Once the cross occurs on the MACD, wait for full formation of the current 15 minute candle
- If the trend direction was bearish, then you would purchase a Buy at the lowest point of the body of the candle where the cross occurred
- If the trend direction was bullish, then you would purchase a Sell at the highest point of the body of the candle where the cross occurred
- I normally place a market order and a working order on this strategy. Many times the strike gets tested for the next few hours, so setting a working order in addition to the market order can give you additional profit possibilities overall.
- That’s it!
"Afternoon Delight" Trade - Thursday, July 16 2015
On this 15-minute Nadex chart, the MACD crossover occurred at 3:15pm EDT. The market then moved below the T-Line (8EMA, shown in purple) and started to grind its way down. The decision was made to SELL the GBP/USD from 1.5620, which was a position of safety.
Since the probabilities were high that this trade would be successful, I risked $72.72 to make $27.25. The trade was never threatened. I've been trading this strategy for several months, and I have been rarely disappointed, so I wasn't too worried.
It is important to note that if the market suddenly decided to reverse and attack my position, it would be very wise to bail out and cut losses. But that wasn't the case yesterday. As it usually does, the market just continued to drift downward, and this trade was never threatened.
Win: SELL at >1.5620 - 1 contract x $27.25 profit, less $1.80 in exchange fees = $25.45
"Afternoon Delight" Trade - Friday, July 17, 2015
The rules for this strategy are slightly modified on Friday, since Nadex does not offer a 7pm expiration on Friday. Today, I was looking for a MACD crossover sometime after 11pm. The crossover occured at 1:30pm and I pulled the trigger on a trade risking a maximum of $60 to make a maximum of $40 dollars. The trade was briefly threatened, but it settled safely in the money for a full profit.
This strategy is very consistent. To backtest it, just load the 15-minute charts and the MACD. Look at the time period after 12noon and look for a MACD crossover. If it happens, look at where the GBP/USD price is at 7pm. Test this strategy in demo before you attempt trading it live to see if it suits your trading style.
Try this Strategy Out for Yourself. Download a 2 Week Nadex Demo.
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Click Below to View Krystal Comber's "Afternoon Delight" Strategy
The Trading Pub Team